State consumer confidence hits post-recession high

Florida consumer confidence reached a post-recession high in September while politics could affect the mood to spend heading into the holidays, according to University of Florida researchers.

By Anthony ClarkBusiness editor

Florida consumer confidence reached a post-recession high in September while politics could affect the mood to spend heading into the holidays, according to University of Florida researchers.The confidence index reached 79 in September, up from a revised 76 in August. It reached a low of 59 in June 2007.The index is benchmarked to a 1966 level of 100 and measures changes over time within a range of two to 150.Confidence was at the highest level since dropping to 79 in October 2007. At the time, it was on the way down as the housing crisis was starting, said Chris McCarty, director of UF’s Survey Research Center in the Bureau of Economic and Business Research.Among positive economic indicators, McCarty credits improvements in Florida home prices and the stock market.On the other hand, the Florida unemployment rate was unchanged at 8.8 percent in August, and gas prices remain high.All five components of the survey showed increases. Perceptions that consumers are better off today compared with a year ago rose one point to 62, while expectations that personal finances will improve in a year rose one point to 86. Perceptions that now is a good time to buy big-ticket items rose two points to 82. The outlook for the U.S. economy over the next year saw a three-point increase to 78, and the five-year outlook rose two points to 84.The presidential election could influence confidence in the coming months, McCarty said. A likely question during the first debate on Oct. 3 about automatic budget cuts and tax increases looming in January unless Congress takes action would increase awareness about the so-called “fiscal cliff.”The result of the election also could have an effect since supporters of President Barack Obama have much higher confidence in the economy than supporters of Mitt Romney, he said.